Legal Question in Real Estate Law in Illinois

Buyer/Seller Contract or Form

Is there such a contract where Owner & Buyer set up their own contract for the selling/purchase of a unit for said amount down, said amount monthly payments, where the Owner acts like a Mortgage Co. instead of borrowing money from a bank. So in essence, you are paying a monthly mortgage to the Owner until the entire property is paid off. Saving on interest rates. If so, who holds the title deed and what should be checked out before going into a contract like this and what are the precautions. Also since there would be no interest involved, how does that affect your taxes.


Asked on 7/08/02, 9:10 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Buyer/Seller Contract or Form

I agree with Mr. Pollak--you need an attorney for this type of transaction. Make sure you find a real estate attorney in your area to help you. Some sort of title evidence should be provided to you so you can be sure the person selling is really the person who owns the property.

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Answered on 7/10/02, 12:11 pm
Jay Pollak The Pollak Law Firm, LLC

Re: Buyer/Seller Contract or Form

This is sometimes called a contract for deed. First and formost YOU NEED A LAWYER to prepare this contract and protect you. Of course there is interest. Its built-in there somewhere and if there isn't interest the IRS will impute it. There are many options and variations. Guarantying that you get the deed when you finsh paying is only one of many.

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Answered on 7/08/02, 9:17 pm


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